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Financial Wellness Are You Missing a Growth Opportunity?

Imagine this scene: As customers walk into your branch or call in for help, your staff has been trained to think, “I wonder what pain, dream or goal this person has today and for the future? My job as a financial coach is to find out.” Imagine how this would radically change the conversation, create loyalty and impact share of wallet.

In case you haven’t noticed, there’s a growing movement in the financial services industry to improve customers’ financial health—not just sell them something. Not only is this a higher level of service but
in the digital age, we predict improving consumers’ financial well-being will be essential to differentiate your bank and create a competitive advantage.

Doctors Improve Physical Health – We Must Improve Financial Health

I had an “aha moment” while sitting in the waiting area for a doctor appointment. My doctor’s job is to ask
really good questions, diagnose my ailment and offer the best remedy to restore my health. She’s a health
partner in my life journey and I take her advice most of the time. It’s really that simple. Then I thought, “So
why is there a scarcity of banks that place a priority on the simple concept of helping customers improve their
financial health?”

You may be thinking, “But we give financial advice all day every day.” To that we quote Ron Shevlin from
Cornerstone Advisors: “Too often, what we try to pass off as advice is nothing more than marketing offers.
In other words, the ‘advice’ is what’s good for the bank, and not necessarily the customers. Are we really helping our struggling customers by giving them pay day loans, credit cards, and consolidating debt without also providing a plan to achieve financial stability?”

Consumers Want You to Help Them Improve Their Financial Health

Gallup survey of 11,809 adults clearly demonstrated that “consumers want their bank to improve their financial well-being, not just sell them products.” Some other key findings include:

When customers strongly agreed their bank looked out for their financial well-being, about 84% were fully engaged and none were actively disengaged.

• Financial institutions that take the time to address financial health saw strong consumer confidence.

• Unfortunately, only one in four respondents strongly agreed their bank looks out for their financial well-being (sounds like opportunity to us!).

Why do we undermine the customer relationship by focusing our staff on pushing products and getting a sale
instead of diagnosing what stands between customers and their financial health? They’d be just as likely to
purchase products (or even more so) if they saw we had a genuine interest in helping them better manage
their finances.

Financial Wellness Offers a Great Opportunity to Improve the Customer Experience, Enhance Engagement and Increase Revenue Generation

You certainly are aware that financial anxiety is at an all-time high. Here are some grim stats from research by Dave Ramsey’s organization:
• 70% are living paycheck to paycheck

• 24% of pay is spent on non-mortgage debt such as credit cards

• 64% don’t have enough cash to cover one month’s mortgage cost or groceries

• 56% of Gen X workers (age 36-49) say they’ll need $1-2 million to retire comfortably yet they have an average savings of $70,000

People represented by the above percentages need more than just isolated products without further guidance.
They need a financial partner. The numbers illustrate the need. Here’s the want:

• Millennials are actively seeking financial advice and need help building credit, saving and managing finances
• Business owners are looking for financial education for employees
• Boomers and seniors are concerned about income protection and many are looking for help

Is Your Staff Diagnosing for Financial Wellness or Just Selling Isolated Products?

• Face it; your customers don’t want your products! They want to alleviate a pain, reach a goal or enjoy financial peace. Read this finding again: The Gallup study clearly demonstrates that consumers want you to improve their financial well-being, not just sell them products. Our job is not simply to sell a product but diagnose correctly. Unfortunately many of your staff is thinking “what can I sell this person today.” Here’s what we see all too often:

• Most of us are stuck in the old, tired sales training model of transactional product-selling. Our staff is trained to listen for a cue so they can quickly discuss product features and benefits. Unfortunately they are not skilled or comfortable in uncovering financial anxieties, goals and dreams and proactively managing the relationship.

• Monthly product goals and incentives encourage short-term sales, the wrong behaviors and a very underwhelming or repelling customer experience. As a result, there is no emotional connection. Emotional motivators are the key to stir your customers to take action.

• Your marketing slogan or brand promise claims, “we help you achieve financial security and reach your dreams.” However, that’s not what people are experiencing.

Is It Time to Change Your Direction? Here’s What You Can Do

With strategic planning coming up this fall, we challenge you to rethink and redefine your sales model. Does it support your philosophy and branding? Are your employees highly engaged and feel they make a difference in the lives of your customers? Are you missing out on the growth opportunities improving financial health offers your bank? If changing course is under consideration, here are some actions items to consider.

1. Be sure to include an objective in your strategic plan that your bank is advancing beyond a transactional, product selling model to a relationship-advice model. In fact, consider playing down or removing the term “sales culture” and replace it with a customer relationship-building culture or CRM – customer relationship management.

2. Elevate the role of branch employees. Create a team of elite financial coaches armed with interactive tools and skilled in engaging customers to discuss budgets, goals, pains and dreams. Your MSRs and financial service representatives don’t need to be licensed. However, they do need to enjoy educating, guiding and discussing basic money management principles.

3. In a recent Financial Coach training for a community bank, I was quite pleased to see how excited and receptive their staff was to this educational approach. They were proud of their enhanced role and relieved it wasn’t about pushing products. In fact, a few days after the onsite program Jaclyn sent me the following email. Clearly, she provided a highly differentiated and engaging experience for this customer.

Barb, I was just meeting with a customer and we went over her money values survey, monthly budget and the financial wheel. SHE IS PUMPED about saving money, fulfilling her dream of buying a new house and creating financial stability for her family! She is going to go home, fi ll out the budget with her husband and is coming back for more coaching with me. She said, “I didn’t know a bank did this stuff and I had no idea of any of this. Thank you so much.” It makes me so happy to help a family this way.

4. Remember, technology doesn’t build relationships – your people do! Examine your existing sales training to determine if it focuses on transactional product selling and product pushing. Decide to invest in relationship management and financial coaching training instead.

5. Take a hard look at your current incentive plan as it may be driving the wrong behaviors. Ultimately you want to grow share of wallet with each customer over time. In addition, be sure to recognize key activities such as pre-call planning and entering life events, anxieties, goals and dreams in the customer profile in your CRM. In fact, consistent profiling and recording of customer financial goals and progress is an expectation.

6. Educate your leadership team and board on the benefits of a relationship-driven approach combined with financial health and education. Many clients find our white papers and blog posts valuable as advance reading before strategic planning.

At High Definition Banking® we believe if you want your bank to thrive and be relevant in the lives of your customers, you must be genuinely committed to improving their financial health and well-being. In
doing so you will have a loyal following that considers you their financial partner. Bottom line, it’s time to turn
your retail staff into financial educators and coaches!

Barbara Sanfilippo is an award-winning speaker, coach, customer relationship consultant and founder of High Definition Banking®. Her training and consulting fi rm partners with banks to instill a structured relationship management process to accelerate organic growth and focus on the financial health of customers. Barb is passionate about creating inspired employees and leadership committed to making a difference in the lives of their customers. Engage Barb directly for your Annual Staff Event at 858-674-5500, ext 101 or For consulting, training and whitepaper visit www.HighDefi nitionBanking. com and view her speaker demo video at Connect on LinkedIn.


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